1893 - State Library Information Center

CO-OPERATIVE BUILDING AND LOAN ASSOCIATIONS. 183two years it was found that money was accumulating, with veryfew or no borrowers on hand. Therefore it was decided to makethe association serial, beginning the third year with a new seriesand designating it the third series. This is why there is no secondseries. All new series were limited to 1,000 shares.At the close of the fiscal year 1892 we found we had 871 sharesstill outstanding in the first series and with about 140 shares onlyborrowed on. This series was being surrendered very slowly, asthe weak holders had generally withdrawn. Hence we had toface the fact, that unless some provision were made to get thisstock cancelled we should have about $100,000 to $110,000 toraise at its maturity, and it was accordingly resolved to offer toredeem first series stock at each meeting at its full earned value,less such per cent, as a holder might bid for priority of payment;and further, if no stock or not enough should be forthcoming touse up $2,000 per month for this purpose; that we set aside suchamount as a sinking fund for its payment at maturity or whenpresented for redemption. Thin has been an inducement forsome of the holders to turn in their stock of the first series andtake out shares of later series.For the nineteen months this plan has been in operation wehave redeemed $28,028.73 worth of stock, and have placed to thecredit of the sinking fund $7,000, making the total amount usedand set aside $85,028.73. But the demand is not up to theanticipation.We try to make the sinking fund earn some interest by placingit with trust companies, and we have some out on bond andmortgage, with privilege of calling it on six months' notice.Considering the times, there is fair demand for money forloans, and we now have nearly $5,000 loaned in advance; thereare also more surrenders on late series than we have had heretofore.Of course the sinking fund plan leaves us with less moneyto loan, but as soon as we get this first series out of the waythen we shall have more plain sailing, as there are less shares inthe other series, with more borrowers, viz., in the third serieswe have 179 shares out with 70 shares borrowed on; fourthseries, 97 shares out with over 60 borrowed on; fifth, 230 outwith about 85 borrowed on; and so on.